S&P Global Ratings Maalot Confirms Ratings of Sapiens and its Series B Debentures as "ilAA-" with a Stable Outlook/ "ilAA-"
Sapiens International (Nasdaq: SPNS; TASE: SPNS) has received a reaffirmation of its 'ilAA-' long-term issuer rating with a stable outlook from Ma'alot S&P Global. The rating also applies to Sapiens' Series B Debentures, traded on the Tel Aviv Stock Exchange. The Series B Debentures were issued under Israeli shelf prospectuses filed in 2017 and 2020. CEO Roni Al-Dor highlighted the company's consistent revenue growth, increasing profitability, and strong cash flow as key factors for the rating confirmation. The Hebrew version of Ma'alot's rating report was submitted to the Israel Securities Authority and the Tel Aviv Stock Exchange, with an English translation available for convenience.
- Sapiens' 'ilAA-' long-term issuer rating reaffirmed with a stable outlook.
- Series B Debentures rating also confirmed as 'ilAA-'.
- Company achieves consistent revenue growth, profitability, and strong cash flow.
- None.
Insights
The confirmation of Sapiens International Corporation's long-term issuer rating as "ilAA-" with a stable outlook by Ma'alot S&P Global is a significant event. This rating reflects the company's robust financial health, consistent revenue growth and solid profitability. Investors should view this as a positive signal, indicating that Sapiens is financially stable and capable of meeting its long-term obligations.
For retail investors, a rating of "ilAA-" signifies a very low risk of credit default, which makes the company's debentures and overall financial standing more attractive. A stable outlook suggests that this financial stability is expected to continue in the foreseeable future, which can provide reassurance to investors considering long-term investments in Sapiens.
Potential Benefits and Drawbacks:
Short-term benefits: An immediate impact might be increased investor confidence, potentially leading to a rise in the company's stock price. This could also result in better terms for any future debt offerings.
Long-term benefits: Sustained investor confidence could help maintain or even improve the company's market position and access to capital. The stable outlook suggests that the company is well-managed and positioned for continuous growth.
Drawbacks: One potential drawback could be complacency. The company must continue to innovate and adapt to market changes to maintain this rating. Any misstep could result in a downgrade, negatively impacting investor sentiment.
This rating confirmation by Ma'alot S&P Global also implies that Sapiens is performing well within the competitive landscape of the insurance software solutions market. For investors, this indicates that Sapiens has carved out a significant niche and is maintaining its competitive advantage. The insurance industry is known for its stability and companies offering software solutions to this sector typically benefit from steady demand.
Industry Context: The insurance software market is expected to grow, driven by digital transformation initiatives across the insurance sector. Sapiens' confirmed rating and stable outlook suggest that it is positioned to capitalize on this growth. This stability and growth potential can make Sapiens an attractive investment.
Important Considerations: It's essential for investors to keep an eye on industry trends, such as advancements in technology and regulatory changes, which can impact the company's performance. However, the current rating indicates that Sapiens is well-equipped to navigate these changes.
The Series B Debentures are traded on the Tel Aviv Stock Exchange ("TASE") and were offered in
Mr. Roni Al-Dor, President & CEO of Sapiens, commented: "Sapiens continues to achieve long-term success in realizing revenue growth, increasing profitability and generating strong cash flow. The rating confirmation reflects the ongoing confidence of the market and experts in Sapiens. Sapiens is well known in the market for its long-term track record of growth in both revenue and profit.
Maalot's official rating report, in Hebrew, was submitted by Maalot to the Israel Securities Authority and the Tel Aviv Stock Exchange. For convenience, the English translation of Maalot's rating report can be found by clicking here. The Company is also submitting a report on Form 6-K that attached this press release (with the link to the English translation of Maalot's report) to the
This announcement shall not constitute a solicitation or an offer to buy any securities.
About Sapiens
Sapiens International Corporation (NASDAQ and TASE: SPNS) is a global leader in intelligent insurance software solutions. With Sapiens' robust platform, customer-driven partnerships, and rich ecosystem, insurers are empowered to future-proof their organizations with operational excellence in a rapidly changing marketplace. We help insurers harness the power of AI and advanced automation to support core solutions for property and casualty, workers' compensation, and life insurance, including reinsurance, financial & compliance, data & analytics, digital, and decision management. Sapiens boasts a longtime global presence, serving over 600 customers in more than 30 countries with its innovative SaaS offerings. Recognized by industry experts and selected for the Microsoft Top 100 Partner program, Sapiens is committed to partnering with our customers for their entire transformation journey and is continuously innovating to ensure their success.
For more information visit https://sapiens.com or follow us on LinkedIn.
Media and Investors' Contact
Yaffa Cohen-Ifrah
Chief Marketing Officer &
Head of Investor Relations, Sapiens
yaffa.cohen-ifrah@sapeins.com
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SOURCE Sapiens International Corporation
FAQ
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